Consumer 2.0, Inc. v. Tenant Turner, Inc.
This text of 343 F. Supp. 3d 581 (Consumer 2.0, Inc. v. Tenant Turner, Inc.) is published on Counsel Stack Legal Research, covering District Court, E.D. Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.
Opinion
ROBERT G. DOUMAR, UNITED STATES DISTRICT JUDGE
This matter comes before the Court on a Motion to Dismiss ("Motion") filed by Defendant Tenant Turner, Inc. ("Defendant"). ECF No. 12. In such motion, Defendant asks the Court to dismiss the Complaint ("Complaint") filed by Consumer 2.0, Inc., d/b/a Rently ("Plaintiff") in its entirety, pursuant to Fed. R. Civ. P. 12(b)(6). ECF Nos. 1, 12. In its Complaint, Plaintiff alleges that Defendant has infringed one or more claims of United States Patent No. 9,875,590, entitled "Automated Entry" ("the '590 patent"). ECF No. 1 ¶ 9. The issue before the Court is whether the '590 patent claims patentable subject matter under
I. BACKGROUND
A. PROCEDURAL HISTORY
On July 3, 2018, Plaintiff filed a Complaint against Defendant alleging patent infringement of the '590 patent, "Automated Entry." ECF No. 1. On August 7, 2018, Defendant filed the instant Motion to Dismiss along with its Memorandum in Support, to which Plaintiff filed its Response in Opposition ("Resp.") on August 28, 2018. ECF Nos. 12, 13, 16. Defendant filed its Reply to Plaintiff's Opposition on September 4, 2018 ("Reply"). ECF No. 17. The parties jointly filed a Motion for Oral Argument on September 6, 2018. ECF No. 18. The parties appeared before the Court for a hearing on this matter on October 15, 2018. ECF No. 20.
B. PATENT-IN-SUIT
Plaintiff alleges that Defendant infringes claims 7, 8, 9, 10, 11, 12, 13, 14, 15, and 16 of the '590 patent. ECF No. 1 ¶¶ 17 - 35. According to the '590 patent's description, the "system provides automated entry to a prospective buyer or renter of properties" and "automates the tour registration process," which "eliminates the need to arrange a tour with an agent or landlord" and "eliminates the need for an on-site representative of the property." '590 patent, ECF No. 1-1, Ex. 1 at 19. The patent identifies several entities that perform the patent's method: (1) a lockbox or automated *584door lock, (2) a server, (3) an application interface, and (4) a portable device.
"[A] lockbox or similar locking device is placed at or near a property in order to enable an invited visitor to gain automated and unaccompanied entry into a specific property during a specified period of time." Resp., ECF No. 16 at 8. An "application collects information from the visitor's portable device about the visitor and his planned visit" and "[t]his information is relayed to a server." Id."The application provides the visitor with an invitation to receive automated entry information (e.g., a valid code)."
This process is described in Claim 7 of the patent, which is representative:
A method for providing automated entry to properties, comprising:
making properties available for viewing to invited visitors;
providing an application interface of an application running on a computing system to a property manager, the property manager being a manager, a listing agent or an owner of the property, the application interface prompting the property manager to enter a visitor name and contact information for a visitor, wherein upon receipt of the visitor name and contact information, the application provides the visitor with an invitation to receive automated entry information including code information that is valid during a specified period of time so that the visitor can enter a property by themselves, the invitation being delivered to the visitor electronically, the invitation being applicable only to the property and the invitation requesting identification from the visitor;
placing a lock box or an automated door lock at or near each property;
upon the application receiving and confirming identification information for the visitor, providing, by the application, automated entry information to the visitor that allows the visitor to enter the property, the automated entry information including code information that is valid during the specified period of time;
upon the visitor providing the code information to the lock box or the automated door lock at the property within the specified period of time, the lock box or the automated door lock opening to facilitate automated entry to the property;
tracking visitor activities at the properties; and
making information about the properties available within a user interface.
'590 patent, ECF No. 1-1, Ex. 1 at 23. Claim 7 is the only independent claim asserted in the Complaint. The dependent claims (8-16) build on this basic framework.
The patent-at-issue was initially rejected by the patent examiner as "directed to non-statutory subject matter because the claim(s) as a whole, considering all claim elements both individually and in combination, *585
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ROBERT G. DOUMAR, UNITED STATES DISTRICT JUDGE
This matter comes before the Court on a Motion to Dismiss ("Motion") filed by Defendant Tenant Turner, Inc. ("Defendant"). ECF No. 12. In such motion, Defendant asks the Court to dismiss the Complaint ("Complaint") filed by Consumer 2.0, Inc., d/b/a Rently ("Plaintiff") in its entirety, pursuant to Fed. R. Civ. P. 12(b)(6). ECF Nos. 1, 12. In its Complaint, Plaintiff alleges that Defendant has infringed one or more claims of United States Patent No. 9,875,590, entitled "Automated Entry" ("the '590 patent"). ECF No. 1 ¶ 9. The issue before the Court is whether the '590 patent claims patentable subject matter under
I. BACKGROUND
A. PROCEDURAL HISTORY
On July 3, 2018, Plaintiff filed a Complaint against Defendant alleging patent infringement of the '590 patent, "Automated Entry." ECF No. 1. On August 7, 2018, Defendant filed the instant Motion to Dismiss along with its Memorandum in Support, to which Plaintiff filed its Response in Opposition ("Resp.") on August 28, 2018. ECF Nos. 12, 13, 16. Defendant filed its Reply to Plaintiff's Opposition on September 4, 2018 ("Reply"). ECF No. 17. The parties jointly filed a Motion for Oral Argument on September 6, 2018. ECF No. 18. The parties appeared before the Court for a hearing on this matter on October 15, 2018. ECF No. 20.
B. PATENT-IN-SUIT
Plaintiff alleges that Defendant infringes claims 7, 8, 9, 10, 11, 12, 13, 14, 15, and 16 of the '590 patent. ECF No. 1 ¶¶ 17 - 35. According to the '590 patent's description, the "system provides automated entry to a prospective buyer or renter of properties" and "automates the tour registration process," which "eliminates the need to arrange a tour with an agent or landlord" and "eliminates the need for an on-site representative of the property." '590 patent, ECF No. 1-1, Ex. 1 at 19. The patent identifies several entities that perform the patent's method: (1) a lockbox or automated *584door lock, (2) a server, (3) an application interface, and (4) a portable device.
"[A] lockbox or similar locking device is placed at or near a property in order to enable an invited visitor to gain automated and unaccompanied entry into a specific property during a specified period of time." Resp., ECF No. 16 at 8. An "application collects information from the visitor's portable device about the visitor and his planned visit" and "[t]his information is relayed to a server." Id."The application provides the visitor with an invitation to receive automated entry information (e.g., a valid code)."
This process is described in Claim 7 of the patent, which is representative:
A method for providing automated entry to properties, comprising:
making properties available for viewing to invited visitors;
providing an application interface of an application running on a computing system to a property manager, the property manager being a manager, a listing agent or an owner of the property, the application interface prompting the property manager to enter a visitor name and contact information for a visitor, wherein upon receipt of the visitor name and contact information, the application provides the visitor with an invitation to receive automated entry information including code information that is valid during a specified period of time so that the visitor can enter a property by themselves, the invitation being delivered to the visitor electronically, the invitation being applicable only to the property and the invitation requesting identification from the visitor;
placing a lock box or an automated door lock at or near each property;
upon the application receiving and confirming identification information for the visitor, providing, by the application, automated entry information to the visitor that allows the visitor to enter the property, the automated entry information including code information that is valid during the specified period of time;
upon the visitor providing the code information to the lock box or the automated door lock at the property within the specified period of time, the lock box or the automated door lock opening to facilitate automated entry to the property;
tracking visitor activities at the properties; and
making information about the properties available within a user interface.
'590 patent, ECF No. 1-1, Ex. 1 at 23. Claim 7 is the only independent claim asserted in the Complaint. The dependent claims (8-16) build on this basic framework.
The patent-at-issue was initially rejected by the patent examiner as "directed to non-statutory subject matter because the claim(s) as a whole, considering all claim elements both individually and in combination, *585d[id] not amount to significantly more than an abstract idea." ECF No. 13-1, Ex. 2 at 4. The patent examiner specifically stated that claims 1, 6, and 12, which Plaintiff notes later became representative Claim 7, were rejected because they were "directed to an abstract idea." Id.; Resp., ECF No. 16 at 18. In response to the initial rejection, Claim 12 was amended, in part, to include the addition of the steps of "placing a lock box or an automated door lock at or near the property" and such device "opening to facilitate automated entry to the property" in response to the "visitor providing code information to the lock box or automated door lock within the specified period of time." ECF No. 13-3, Ex. 3 at 3. The applicant also argued that these additions consisted of "physical (not abstract) action[s]". Resp., ECF No. 16 at 19 (citing ECF No. 16-3, Exhibit C at 2). Following these amendments, the patent examiner found that "[a]pplicant's response by virtue of amendment to claims has overcome the examiner's rejection under
II. STANDARD OF REVIEW
A defendant may move to dismiss a complaint under Rule 12(b)(6) on the grounds that it fails to state a claim on which relief can be granted. Fed. R. Civ. P. 12(b)(6). Such a motion should be granted if it appears that the plaintiff is not "entitled to relief under any legal theory which might plausibly be suggested by the facts alleged." Harrison v. United States Postal Serv.,
In resolving a Rule 12(b)(6) motion, the court must assume the truth of all facts alleged in the complaint and construe the factual allegations in favor of the non-moving party. Robinson v. Am. Honda Motor Co.,
"A motion to dismiss for failure to state a claim upon which relief can be granted is not a procedural matter implicating unique issues of patent law, and thus the law of the Federal Circuit is not controlling." Taltwell, LLC v. Zonet USA Corp., No. 3:07cv543,
*586Bel IP, No. 2:11cv188,
Finally, patentability under section 101 is an issue of law that may be resolved on a Rule 12(b)(6) motion to dismiss. Content Extraction & Transmission LLC v. Wells Fargo Bank, Nat. Ass'n,
III. ANALYSIS
The issue here is whether the claims at issue are eligible for patent protection. Section 101 of the Patent Act defines the subject matter eligible for patent protection, providing as follows:
Whoever invents or discovers any new and useful process, machine, manufacture, or composition of matter, or any new and useful improvement thereof, may obtain a patent therefor, subject to the conditions and requirements of this title.
The first step of Alice requires a determination by the Court as to "whether the claims at issue are directed to" one of the three patent-ineligible concepts (laws of nature, natural phenomena, or abstract ideas).
A. ALICE STEP ONE
Step one of Alice requires the Court to determine whether the asserted claims of the '590 patent describe a patent-ineligible concept: laws of nature, natural phenomena, or abstract ideas. Alice,
"The Supreme Court has not established a definitive rule to determine what constitutes an 'abstract idea.' " Enfish, LLC v. Microsoft Corp.,
Following Alice's guidance, courts have found that claims which are primarily directed at "collecting, analyzing, and displaying data" as well as claims that "classify[ ] and stor[e] digital images in an organized matter" through the implementation of a server are abstract ideas. See SmarTEN LLC v. Samsung Electronics Am., Inc.,
Importantly, the Federal Circuit has added a new consideration to the first step of the Alice analysis for claims involving computer-related technology. The purpose of this new consideration is to distinguish between claims that "merely recite the performance of some business practice known from the pre-Internet world along with the requirement to perform it on the Internet" and claims that are "necessarily rooted in computer technology in order to overcome a problem specifically arising in the realm of computer networks." DDR Holdings, LLC v. Hotels.com, L.P.,
The claims in Alice were directed to a "computerized scheme for mitigating 'settlement risk'-i.e. , the risk that only one party to an agreed-upon financial exchange will satisfy its obligation."
Similarly, in Asghari, this Court found that an invention relating "to a system and method ... for centralized identification and authentication of users and their transactions to increase security in e-commerce" was a patent-ineligible, abstract idea.
This Court finds that the claims at issue are directed to an abstract idea. Distilled to its essence, the claims use generic computing devices and techniques to provide automated entry to a property without human interaction. As Defendant notes, "[r]eal estate agents have used lockboxes to provide licensed real estate professionals access to properties for decades." ECF No. 13 at 9. The '590 patent simply automates that process using generic computer components such as a server, technology-enabled lock box/automated door lock, application interface, and mobile device. However, automation of a human, manual process is an abstract idea. See CalAmp Wireless Networks Corp. v. ORBCOMM, Inc.,
The Court recognizes, however, that there are multiple elements comprising the representative claim, which result in the *589process of automated entry. Following the Federal Circuit's warning to avoid analyzing and describing the claims at issue at "a high level of abstraction and untethered from the language of the claims," the Court has considered each of these elements. Enfish,
Several of the elements are merely directed to the implementation of the abstract idea of providing automated entry and making properties available for viewing to invited visitors through generic computer components, such as an "application interface" and a "server." '590 patent, ECF No. 1-1, Ex. 1 at 23. For example, Claim 7 states that:
the application interface prompting the property manager to enter a visitor name and contact information for a visitor, wherein upon receipt of the visitor name and contact information, the application provides the visitor with an invitation to receive automated entry information including code information that is valid during a specified period of time so that the visitor can enter a property by themselves, the invitation being delivered to the visitor electronically, the invitation being applicable only to the property and the invitation requesting identification from the visitor
...
upon the application receiving and confirming identification information for the visitor, providing, by the application, automated entry information to the visitor that allows the visitor to enter the property, the automated entry information including code information that is valid during the specified period of time.
There is nothing in the language of these elements indicating that the claim at issue here is directed to any specific improvement in computer functionality or capabilities. The Federal Circuit was clear in Enfish that the proper question for the Court is "whether the focus of the claims is on the specific asserted improvement in computer capabilities ... or, instead, on a process that qualifies as an abstract idea for which computers are invoked merely as a tool."
Furthermore, Plaintiff's inclusion of tangible components such as the lockbox and mobile device does not prevent this Court from determining that the claims are directed to an abstract idea. See TLI Commc'ns,
Additionally, the element that provides for "upon the visitor providing the code information to the lock box or automated door lock ... the lock box or automated door lock opening to facilitate automated entry" is directed to an abstract idea. '590 patent, ECF No. 1-1, Ex. 1 at 23. In Chargepoint, the court clarified that claims amounting to merely "operating an existing device from a remote location over a network" do not constitute a "technological improvement" and are therefore, not patent-eligible.
The fact that the claim includes an element of "tracking" also does not take the patent-at-issue out of the realm of abstract. See, e.g., CalAmp,
Finally, the Court finds that the element of "making information about the properties available within a user interface" simply consists of collecting and displaying data, a process which Courts have consistently found to be abstract. '590 patent, ECF No. 1-1, Ex. 1 at 23; see SmarTEN,
Furthermore, the mere combination of these abstract processes is insufficient to bring the patent-at-issue out of the realm of the abstract. Electric Power,
*591Asghari,
For these reasons, the Court finds that the '590 patent as a whole is directed to the abstract idea of provided automated entry.
B. ALICE STEP TWO
Because the Court has determined that the '590 patent is merely an abstract idea, it must proceed to the second step of Alice. Step two is described as the "search for an 'inventive concept.' " Alice,
Plaintiff asserts that Claim 7 should "pass this test as containing a sufficient inventive concept" because "the coordinated server and lockbox with the application interface on a portable device represents a level of symbiotic operation that never previously existed." Resp., ECF No. 16 at 22. Plaintiff relies heavily upon BASCOM Global Internet Services, Inc. v. AT & T Mobility LLC in support of this position.
The claims in BASCOM, however, "address[ed] a problem arising in the realm of computer networks, and provide[d] a solution entirely rooted in computer technology."
The claims at issue here are distinguishable from those in BASCOM as they do *592not purport to improve the functionality of a computer or overcome existing technology-based problems. A comparison with Asghari is once again instructive. In Asghari, the steps of the representative claim were as follows: "(1) receiving electronically a request for a dynamic code for the user; (2) generating by the Central-Entity a dynamic code; (3) providing the generated dynamic code to the user; (4) receiving electronically by the Central-Entity a request for authenticating the user from a computer associated with the External-Entity; and (5) authenticating by the Central-Entity the user and providing the result to the External-Entity." Asghari,
Similarly, in CalAmp, the court found that "the use of a remote database to save storage space on a tracking device [wa]s hardly an unconventional solution." CalAmp,
Here, Plaintiff states that the patent-at-issue "contemplates an application providing automated entry ... by "invitation only" delivered electronically to the portable device of a specific visitor" after "collect[ing] information ... about the visitor and his planned visit," relaying this information to a server, and providing "the visitor with an invitation to receive automated entry information." ECF No. 16 at 8. "The lockbox or similar locking device may then be opened to facilitate the automated ... entry by the invited visitor." Id. at 9. The functions performed at each of these steps is purely "conventional" and "does no more than require [ ] generic computer" components to perform "generic computer functions." Asghari,
Additionally, "[v]iewed as a whole, these method claims simply recite the concept of" automated entry to a property "as performed by a generic computer" or computers. Alice,
For these reasons, the Court finds that the elements of the claim at issue, both individually and as an ordered combination, do not add anything inventive which would transform the claim into a patent-eligible concept.
C. THERE ARE NO FACTUAL QUESTIONS THAT PRECLUDE A FINDING OF PATENT INELIGIBILITY
Plaintiff argues that factual questions at issue in this case preclude a finding of patent ineligibility at the motion to dismiss stage. Resp., ECF No. 16 at 33. The Federal Circuit recently held that "whether a claim element or a combination of elements is well-understood, routine, and conventional to a skilled artisan in the relevant field is a question of fact." Berkheimer v. HP, Inc.,
In BSG Tech LLC v. Buyseasons, Inc., the Federal Circuit clarified that it is not necessary to consider whether execution of an abstract idea "on a generic computer" is "well-understood, routine, and conventional."
The Court finds that there is no question of fact as to this issue. First, as discussed, the Court finds that it is not evident from the '590 patent specifications that there is any inventive feature used in an unconventional manner. Further, the Court finds nothing in the pleadings to fill this gap in the specifications. The Complaint alleges that "the '590 patent eliminated the need existing at the time for an on-site property management or real estate professional to be present in order for an invited visitor to gain physical access to the property" and that "prior to [Plaintiff's] invention, no other company in the field had reduced to practice the method and system set forth in the '590 Patent." ECF No. 1 ¶ 13. The only alleged unconventional features of Plaintiff's claims are that the "elements set forth in the '590 Patent both individually and in combination represent a novel approach for enabling an invited visitor to self-register and self-access a property" through the "coordination of operation of a server, technology-enabled lock box, application interface, and mobile device." Id.; Resp., ECF No. 16 at 24. However, "this simply restates what we have already determined is an abstract idea" and describes the implementation *594of the abstract idea through conventional computer components. BSG Tech,
IV. CONCLUSION
For the above reasons, the Court holds that the asserted claims of the '590 patent at issue are invalid because they are directed to an abstract idea and thus ineligible for patent protection under
The Clerk is DIRECTED to forward a copy of this Opinion and Order to all Counsel of Record.
IT IS SO ORDERED .
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